Industry strengthens opposition to fortified Safeguards Rule

The National Automobile Dealers Association submitted renewed objections to the Federal Trade Commission's proposed Safeguards Rule amendments, which beef up requirements for financial institutions to protect consumer data.

In a periodic review of its data protection guidelines, the federal watchdog proposed in March 2019 several amendments governing what steps financial institutions should undertake to reasonably prevent data breaches. Dealerships are obligated to follow the Safeguards Rule because of their indirect financing relationships with lenders and the fact they store sensitive consumer information in their software.

In its renewed comments, submitted Aug. 12, NADA urged the FTC to revisit its proposed changes and conduct a cost-benefit analysis.

"No financial institution or other business wants to suffer a data breach or other security incident, yet the emerging consensus is that there is simply no way to ensure with ce…

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F&I role will change, but never vanish

Finance and insurance managers aren't likely going anywhere, according to one industry expert. But at what point in the sales process they're introduced may shift based on changes expedited by the coronavirus pandemic.

Jim Houston, managing director of consumer lending and automotive finance at J.D. Power, said on a webinar hosted by the Automotive Press Association that the F&I product sales experience is here to stay. But it may gravitate more often from the time — and the place — it historically has occurred during a vehicle sale.

"Maybe it's upfront before the vehicle's selected, or in many cases, it could be after the vehicle has been selected, purchased, the consumer goes home and [they] engage you in that particular product after the fact," Houston said.

"More consumers will look to be able to find the vehicle they want and the financing options they want outside of the dealership. The typical indirect model where I sho…

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DealerPolicy adds mobile feature

DealerPolicy, a digital insurance platform that allows customers to compare quotes for car insurance while still in the dealership, is adding a mobile option, the company said last week.

The expansion comes during increased remote and digital change in dealerships as the nation copes with the coronavirus pandemic. The tool, FastPass, allows customers to view insurance quotes with the dealership's assistance at the store or at home.

The company's goal is to connect customers to more affordable insurance policies as many struggle with monthly vehicle costs, and to help dealerships sell more finance-and-insurance products. Mike Burgiss, president of dealer solutions at DealerPolicy, said the mobile feature was tested at select dealerships in the spring and rolled out officially Aug. 13.

To initiate the process, dealership employees enter a customer's cell phone number and vehicle identification number into DealerPolicy's back-end s…

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DAILY DRIVE PODCAST: August 19, 2020 | J.D. Power 2020 TXI study: The brands with a tech edge

Join Automotive News Publisher Jason Stein for a daily podcast series about the coronavirus crisis. He’ll speak with industry experts, insiders and Automotive News reporters about how the virus is impacting and reshaping the automotive industry.

Kristin Kolodge, executive director of human machine interface research and driver interaction at J.D. Power, discusses how the firm's redesigned annual technology experience study can give manufacturers an ''early read'' on systems with staying power. 

How do I subscribe?

Can't wait to hear the next episode of "Daily Drive"? Subscribe through a podcast app to receive episodes days in advance. If you don't have a podcast app already, here are some options. 

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Among new vehicle tech, cameras are a big hit with consumers

Drivers appreciate an extra set of eyes on the road. But they're giving the finger, quite literally, to another feature making its way into new vehicles.

Those are the findings of a new J.D. Power study that measures how effective automakers are in bringing advanced technologies to market in ways that consumers find intuitive and not overbearing.

Vehicle owners are most enamored with cameras, according to the company's 2020 U.S. Tech Experience Index. Luxury owners rate such features highest in five of the six satisfaction attributes measured in the study.

Camera rearview mirrors earned the highest execution index score among luxury owners, followed by ground-view cameras. Among advanced camera/vision technologies in the mass-market segment, camera rearview mirrors received the highest overall execution score, followed by transparent trailer view and ground-view cameras.

Nearly three-quarters of respondents who have thes…

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GM bets on EVs, new tech to reverse slide

SHANGHAI -- General Motors is overhauling its Chinese lineup with a greater emphasis on electric vehicles and smart-driving technology to stem a slide in sales after more than two decades of growth in a country that contributes nearly a fifth of its profit.

More than 40 percent of its new vehicle launches in the country over the next five years are set to be electrified, the U.S. carmaker said on Wednesday.

GM's electric vehicles, many of which will be all-electric battery cars, will be manufactured in China with almost all parts coming from local suppliers, the company said in a statement released at its Tech Day event in Shanghai.

GM did not say in the statement how many new or significantly redesigned models it was planning to launch in China over the next five years.

"China will play a crucial role in making our vision a reality," GM CEO Mary Barra said in the statement, referring to its initiative to create what it describes as a future of "z…

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Lessons learned from online coaching

When states instituted stay-at-home orders in the early days of the coronavirus pandemic, OEC performance coaches found themselves in an unfamiliar position. That is, coaching parts departments virtually on how to strategically implement software solutions — a task they typically did in person. Now, as states continue to combat the virus through the summer and adjust to restrictions, the coaches' early online experiences offer useful insights into how to provide customer service from a distance. Here are a few keys:

When his team first started to offer virtual coaching to help dealerships adapt to the circumstances, Shane Murphy, OEC Manager, Field Services, told them: "Just do me one favor and start turning your cameras on." This simple request led to the coaches developing and maintaining a human connection that, despite geographical differences, eased the transition to online interactions.

Dealerships and coaches shared screens and wo…

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Parent of BMW's China partner faces mounting debt woes

HONG KONG -- The parent of BMW's joint venture partner in China, Brilliance Auto Group Holdings Co., is facing mounting scrutiny from investors who are increasingly worried about the state-owned company's capacity to juggle its debt load as the pandemic weighs on profits.

Brilliance Auto is the parent of Hong Kong-listed Brilliance China Automotive Holdings Ltd., which manufactures vehicles with BMW in China via a joint venture. The joint venture builds the 3 Series, 5 Series, and 1 Series alongside the X1 and X3 utility vehicles in China for BMW. It also builds the 60H from its China-only brand Zinoro, according to information on the company's website.

Speculation has been building that the group will struggle to service its liabilities after its banks set up a creditor committee to coordinate claims on the company's debt. The group needs to repay 1.37 billion yuan ($200 million) in outstanding local bonds this year, Bloomberg-compiled data show.

Brilli…

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Lease credit approval rates dip slightly to 65.1% in July

CINCINNATI, OHIO (August 12, 2020) – Swapalease.com, the nation’s largest car lease marketplace, reports car lease credit applicants registered a 65.1% approval rate in July, a slight decline from the June rate of 67.1%.

July experienced a higher number of applicants with qualifications for taking over another person’s lease contract yet saw a slight decrease in the number of applicants who were approved. The approval ratings are also slightly lower than those in years past.

In July of 2019, approximately 69.1% of applicants were approved, and in July of 2018, a healthy 71.2% of applicants were approved. Approval rates have continued to fluctuate since January when the spread of the COVID-19 virus first began.  The approval rates continued to rise in January and February, with slight fluctuations each month from March to July.

“While the Consumer Financial Protection Bureau reported credit applications for automotive loans fell between thirty and fi…

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Uber mulls franchising in response to Calif. labor law

In another sign that a new law in California could force dramatic changes to ride-hailing in the state, Uber Technologies Inc. said it’s considering licensing the brand to independently operated franchises. The move would create distance between the ride-hailing company and its drivers and would serve as an alternative to classifying them as employees.

Uber said the model would look similar to its black-car operations in the early days. “Drivers would likely earn a predetermined hourly wage for their time on-app, but in exchange, fleets would likely monitor and enforce drivers’ activity and efficiency, for instance by putting drivers into shifts, dictating where and when they drive, and enforcing trip acceptance criteria,” Matt Wing, a spokesman for Uber, wrote in an email. “We are not sure whether a fleet model would ultimately be viable in California.”

The internal discussions were reported earlier Tuesday by the New York Times. The newspaper also said Lyft w…

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Nexteer first-half profit, revenue hit by pandemic

Nexteer Automotive said Tuesday that revenue and profit fell in the first half as a result of the coronavirus pandemic but cost and investment controls helped mitigate some of the impact.

The supplier of steering and driveline systems squeezed out a net profit of $1 million in the first half, a 99 percent drop from a year ago. Earnings before interest, taxes, depreciation and amortization fell 58 percent to $116 million.

Revenue declined 34 percent to $1.2 billion in the first half compared with last year.

Nexteer CFO Bill Quigley said Tuesday in a call with analysts that the company's cost controls were effective in limiting some of the pandemic's impact on EBITDA.

"It's quite the accomplishment," he said, considering auto production in the U.S. and Mexico was shut down for about two months.

By region, revenue fell 38 percent in North America, 26 percent in Europe and 24 percent in Asia.

"We are …

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Bollinger Motors hopes to dodge hex, history of 14925

Robert Bollinger is aiming to break the jinx of 14925 W. Eleven Mile Road in the Detroit suburb of Oak Park.

The 36,600-square-foot building, constructed in 1996 and located about 3 miles north of Detroit's northern city limits, is no stranger to pickups, electric vehicles and other automotive ventures.

But nothing that has emerged from its walls this century has met with much commercial success.

The building was once operated by ASC Inc. — the former American Sunroof Corp. — and the first production vehicle engineered there was the star-crossed 2004-06 Chevrolet SSR pickup with its novel retractable hardtop.

The first few SSRs were hand built at the Eleven Mile Road plant before production was transferred to GM's Lansing Craft Centre in Michigan, which was used to assemble GM's low-volume specialty vehicles such as the Buick Reatta and GM EV1.

GM expected to produce 13,000 SSRs a year but ended up selling…

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